Export Association of the Midwest USA®/Food Export USA®-Northeast

The Bi-Monthly newsletter for importers of U.S. December/January 2016 Vol. 11 No. 6 TOP FOOD TRENDS FOR 2016:

BOOST IN TECHNOLOGY, DELIVERY, PERSONALIZATION, MICRO STORES… emanding consumers and attentive retailers retailer or restaurant nearly invisible as they continue to offer are changing the food landscape as the battle choices from multiple outlets. For supermarkets to win back for the American meal heats up, according relationships with customers, Mr. Lempert says they must become to “Supermarket Guru” Phil Lempert’s Top a one-stop “eco-system” similar to Yelp’s Eat 24: offering reviews, Food Trends for 2016. Technology is keeping recipes, selection, ordering, ePayment, tracking and delivery. consumers more informed than ever before HAVE IT YOUR WAY and providing so many ways to secure food effortlessly. Retailers, Segmentation and personalization continue to grow in popularity. Darmed with massive amounts of tracking information, have new Shoppers want retailers to acknowledge and inspire them, not just opportunities to target evolving consumer preferences. However, occasionally but on every shopping trip and with every product. fierce competition appears to be heightening daily and knows no bounds. The Hartman Group predicts that by 2020 mid-market consumers will become more selective and continue to upgrade their culinary and healthy eating skills. This is not only for food seeking EIGHT MAJOR TRENDS FOR 2016: Millennials, or the top 1%, since personalization will become AGNOSTICISM pervasive. Personalization will advance from being a plus for some Consumers are becoming brand, retailer and daypart agnostic, to a must-have for all. according to Mr. Lempert. Amazon, says the Supermarket Guru, BIOREGIONS started it all as they own the customer experience and the brands Although “local” is an enormous trend in supermarket aisles, they offer have little or no relationship with the buyer. This trend it is an unsustainable trend as weather conditions and climate is worrisome for retailers as they lose their relationships with food change force changes to the sourcing of foods. Mr. Lempert says shoppers to brands like Instacart and Uber who are making the to think bioregions. With the realization that nature defines the (Continued on page 2) U.S. FOODLINK-December/January 2016

TOP FOOD TRENDS FOR 2016 Continued regions for what crops and livestock grow 2016 AT A GLANCE and thrive best in which climates, expect changes accordingly. A few thoughts to Mr. Lempert’s overall predictions include: More mobile. ponder: California farmers relocating to Georgia because of the cost of water, more More delivery. More artisan. More curated. More nutrition. wines originating from South Carolina, and More expensive. produce growers moving to Peru. Consumers are willing to pay a premium for locally produced food, according to a boast “free from” claims—free-from growth is that consumers of all age groups are recent study by A.T. Kearney. Nearly 80% hormones, free-from GMOs and free-from now willing to pay extra for the service. of respondents are willing to pay 10% more artificial ingredients. Currently, Amazon, Google, Instacart and for local products. Also, demand for local EVOLUTION OF THE MILLENNIAL GENERATION Uber are leading the delivery scene. More food is expanding beyond produce, meat than $500 million was invested in food This young demographic—with many and seafood as more consumers say it is an delivery start-ups in 2014. important attribute for prepared foods and gone from the nest, earning salaries and Meal delivery kits are hot! This dry groceries. starting families—buys very differently than other generations, explains Mr. Lempert. convenience, which omits time-consuming What is the ultimate in local? Growing For Millennials, dubbed spontaneous, trips to the supermarket, offers consumers lettuces, kale and herbs in your kitchen flexible, contradictory and adventurous, many specialized options to choose from, year-round without herbicides, suggests Mr. there is no difference to buying online or is portion controlled, eliminates food waste Lempert. The Urban Cultivator and Grove in a store. They make purchases 24 hours and can be prepared with limited cooking are coming to homes very soon, projects the a day. The majority (90%) prepares dinner skills. In 2016, look for celebrity chef Supermarket Guru. at home three or more times each week. offerings, some consolidation and one or MICRO-STORES Nearly three-fourths have the desire to two meal kit services advancing to Expect to see smaller, neighborhood cook better and turn to the internet for top players. grocers to pop up. These stores, such as recipes, photos and inspiration. With only Supermarkets will start to use driverless ALDI (with more than 1,400 locations 56% reporting they feel confident in the vehicles to deliver fresh, refrigerated, frozen in the U.S. and rising), Bfresh in Boston, kitchen, there is a great opportunity for and dry goods to homes. Customers will MA, and Green Zebra Grocery, Portland, grocery retailers to build relationships receive a text alert to show the vehicle OR, are touted more relaxed, attentive and with cooking classes, online videos and location and PIN code to open their curated, with a heavy focus on products information. A third of Millennial shoppers locker and retrieve their food. Tipping that Millennials crave and purchase. Lund’s take environmental concerns into account is eliminated. & Byerlys’ Kitchen with 17,000 square when making food and beverage purchases. Will drones enter the food delivery foray feet includes a 4,000-square-foot, sit-down More than 50% support brands and next? Google’s parent company Alphabet restaurant and numerous local beers on companies that aid their local community is planning to use drones to deliver tap. The grocerant trend will continue and 47% avoid buying from companies packages by 2017. The company is engaged to expand as more supermarkets seek to that have poor labor practices. Millennials in dialogue with the Federal Aviation capture additional food dollars. Adding shop in nine different food retailers over a Administration to establish a system that benefits draws attention and also supports three-month period, while Baby Boomers would enable air traffic control of drones retailers’ efforts to build relationships with shop in approximately six. For this unique flying below 500 feet, reported Time. customers. Micro-stores will shine and generation, it is all about collaboration, connection, community and conversation. dispel the common belief that retailers need TECHNOLOGY TO THE RESCUE to stock 50,000 SKUs to be successful, or Clearly, technology impacts every aspect that you have to serve everyone everything. of the retail food industry, from supply A NEW WAY OF EATING chain to point-of-sale systems to loyalty New kinds of proteins that are more and more. Having accurate and relevant sustainable and affordable than animal information on websites and apps is critical sources will be creating a buzz in 2016. for retailers as part of the process Algae, nuts, vegetables, yeast and even of securing and retaining customers. insects will be used as ingredients to boost As we head into the new year, it is protein content. Novel products with necessary to equip store level personnel healthier profiles will be coming to market. with information and technologies that For example, Thrive Algae Oil (a cooking can answer shoppers’ questions so they don’t and salad oil made from algae that has 75% have to search elsewhere. less saturated fat than olive oil and is high In the increasingly competitive food in monounsaturated fats) recently made industry, retailers should aim to create its debut. A DELIVERY SHIFT a unique food experience, offer tastings, The focus on “less is more” is strong. Food On demand everything is here! The cooking classes, seminars and other social makers will continue to roll out products booming trend of ordering any kind of gatherings. Events that draw consumers to with fewer and recognizable ingredients in food at any time and having it delivered the store for reasons other than a grocery response to consumer demands. Also, an almost instantaneously will grow larger. list contribute to making it the center of increasing number of products in 2016 will One significant change, cites Mr. Lempert, a community.

2 • U.S. FOODLINK WWW.FOODEXPORT.ORG DECEMBER/JANUARY 2016 U.S. FOODLINK-December/January 2016 Food Service Trends: WHAT’S ON THE MENU FOR 2016? “It’s turning into a new behavior Americans will be puckering their lips especially for young restaurant as the budding sour trend leaps into the goers who didn’t have a habit of limelight in the new year. More chefs and starting a meal with raw oysters grocery retailers will showcase novel food or going to an oyster bar after and beverage products with a sour flavor work as a happy hour activity,” profile, as consumers’ taste for sugar slips. explained Ms. Nielsen. It’s easy to Savory flavors will also be prominent, eat, you’re sharing, you can doctor along with salted yogurt, bottled sippable them up if you want or have them soups, contemporary porridge dishes, coffee clean. There’s a discovery process mocktails and more, according to Sterling- of trying out oysters from different Rice Group’s Top 10 Cutting-Edge Culinary places, which I think is very Trends for 2016. appealing to the informed diner.” While something new is always generating In Boston, MA, Creek Oyster . INTENSIFIED DESSERT excitement in the culinary world, frequently Bar’s menu features the names Pastry chefs, ice cream makers and it’s something that’s reinvented from of the oyster growers, harvesters confectioners are incorporating yesteryear, explained Kara Nielsen, SGR and fishermen behind the meals, savory ingredients in treats for a culinary director. reported Food Business News. surprising new dessert experience. Miso paste, malt and corn-husk “Cooks and diners continue to explore . THE SAVORY SIDE OF YOGURT With all the health benefits of mash are among the ingredients and relish all that’s new in food, which that will be intensifying desserts. is often not new at all, but rather a yogurt, less sugar, and a rich, rediscovered ingredient, drink, or dish,” savory taste, labneh is poised to . PASS THE PLATTER says Ms. Nielsen. “Yet these foods have go mainstream. The thick, salted Large platters of family-style been refashioned with a contemporary Middle Eastern yogurt-cheese meals with large cuts of meat, palate in mind, a palate that is appreciative pairs well with olive oil, spices and whole chickens and fish will be of unusual textures, vivid sour flavors, and seeds, flatbread, vegetables, grain bringing diners together for a more savory balance.” salads and roasted fruit. Labneh shared meal. This is a totally new meshes with consumers’ efforts to eating experience for many The following food trends, compiled by reduce sugar and savor more Middle young consumers. SRG’s Culinary Team, are projected to Eastern cuisine. advance from culinary cutting edge to . MAIL-ORDER MEAL MANIA mainstream in 2016: . COFFEE’S NEW GUISES The meal-kit delivery craze will From coffee mocktails and sodas skyrocket in 2016 as big companies SWITCHING TO SWITCHELS .  to unique brews (i.e., coffee cherry expand nationally and smaller start- Made with apple cider vinegar and brews, coffee butter brews), there ups tap niches such as specific diets ginger and sweetened with honey, will be limitless coffee concoctions and regional cuisines. maple or molasses, switchels, a from inventive baristas and revival of an American colonial-era beverage producers. beverage, will quench consumers’ TECHNOMIC’S PROJECTIONS thirsts this year. . SWIGGABLE SOUPS Multi-ethnic dumplings, sausages and On the heels of the pressed juice meatballs (shaped from many types and trend comes a savory assortment combinations of meats) will be generating of sippable bottled soups. The excitement on menus, according to nutrient- and fiber-rich soups, in Technomic’s trends for 2016. bright and spicy varieties such as gazpachos and creamy coconut The spicy trend will get hotter as chefs cauliflower, serve as convenient on- search for the next sriracha. Likely the-go meals. possibilities include: harissa, sumac and dukka from North America. Smoked . PUMPED-UP PORRIDGE and charred flavors will be popular Porridge is making a comeback but throughout the menu, including desserts, with an entirely new flavor profile. fruits and cocktails. Chefs are experimenting with a Quick service restaurants will feature . OYSTERS TO THE RESCUE wide selection of grains such as rye, spelt, black rice and quinoa and more customization and many will simplify Demand for sustainable seafood menus and lower prices. Meanwhile, is driving a resurgence of farmed toppings are shifting from sweet to savory. For example, 42 Grams technology and the rapid growth of delivery oysters. Oyster bars are opening companies are making it easier for hungry everywhere, and Millennials are in Illinois is serving homemade cultured barley porridge with customers to have food brought to their particularly cultivating a taste for doorstep than make a trip to the restaurant. oysters, which were once staples in crispy pork jowl, mushrooms American dining. and grapefruit.

DECEMBER/JANUARY 2016 WWW.FOODEXPORT.ORG U.S. FOODLINK • 3 U.S. FOODLINK-December/January 2016

Calendar of Events Featured Products:

FEBRUARY

21-25: Gullfood Show* Grandma Hoerner’s – Alma, KS Abu Dhabi, UAE Dubai World Trade Centre http://www.gulfood.com/ Grandma Hoerner’s started making big chunky slices of apples slowly cooked in their own naturally sweet sauce, and then they had a groundbreaking idea. They MARCH put them in an on-the-go pouch, capturing all that 8-11: FOODEX Japan* rich, natural goodness and flavor of Grandma’s best in Tokyo, Japan an industry-disrupting package. Grandma Hoerner’s Makuhari Messe Tokyo Big Slice pouches come in a variety of pure flavors: natural, blueberry pomegranate, cherry vanilla, banana 18-20: Expo ANTAD* mango & hemp seed, pineapple passion fruit & fiber, Guadalajara, Mexico or raspberry hibiscus & green coffee extract. For more Expo Guadalajara information, e-mail [email protected].

APRIL

12-15: Food & Hotel Asia (FHA2016) Singapore Singapore Expo Grandma Maud’s – Chicago, IL

13-15: SIAL Canada Chicago, Illinois, based Grandma Maud’s Montreal, Canada introduces American Traditions Seasoning; Palais Des Congres four unique flavored seasonings capturing the De Montreal essence of authentic American cooking. Current flavors include: Southern Seasoning, Cajun Trinity, Lowcountry Heritage and Smokehouse *Food Export Association of Sugar & Spice. They are gluten free, Vegan, the Midwest USA and Food kosher certified, no cholesterol, no added MSG, Export USA–Northeast will be and sodium is less than 1% DV. For more at this show. information, e-mail [email protected].

Plocky’s – Hinsdale, IL

Plocky’s snack portfolio includes Tortilla Chips in five flavors, Hummus Chips in five flavors and two Salsa flavors. All of Plocky’s snacks are unique, have an exceptional savory taste and are made from the finest all-natural ingredients. They have zero trans-fat and absolutely no preservatives— perfect for today’s specialty consumer. For more information, e-mail [email protected].

4 • U.S. FOODLINK WWW.FOODEXPORT.ORG DECEMBER/JANUARY 2016 U.S. FOODLINK-December/January 2016 Featured Products:

STATE SPOTLIGHT Wisconsin • Known as the Badger State, Wisconsin is one of the most diverse agricultural states in the 2014 TOP AGRICULTURAL EXPORTS: nation, producing an extensive variety of dairy, livestock, vegetables and specialty crops. Denatured Ethyl Alcohol & Other Spirits: $209.2 million • Wisconsin is known as America’s Dairyland as it is a national leader in the production of Miscellaneous Food Preparations: $200.6 million cow’s milk, butter and cheese. Whey Products: $162.2 million • Wisconsin has a rich cheese making heritage. Some 1,200 Wisconsin cheese makers craft Wheat (Other than Durum) & Meslin: $121.4 million more than 600 types of cheese and win more awards than any other state or nation. Sausages and Similar Prepared Meats: $114.9 million • Wisconsin is a national leader in the export of dairy products and supplies over 14% of Varietal Cheese, Including Cheddar & Colby: $113.8 million the consumption in the . Soybeans for Oilstock or Consumption: $104.5 million • The state also leads the nation in the production of cranberries, ginseng, mink pelts, corn Baked Goods & Snack Foods: $98.6 million for silage, and snap beans for canning. Sauces, Condiments & Seasonings: $98.4 million Durum Wheat, Other Than Seed: $88.9 million • The state ranks in the top five for oats, tart cherries, maple syrup, mint oil, and carrots, sweet corn and green peas for processing. Cranberries, Prepared & Preserved: $76.2 million Beer Made From Malt: $73.1 million • In 2014 Wisconsin exported more than $1.9 billion in processed food with top markets including Canada, Mexico, China, Japan, South Korea and the Netherlands.

STATE SPOTLIGHT Maine • The small, diversified farms across Maine supply niche markets with organic produce 2014 TOP AGRICULTURAL EXPORTS: and meat, value-added products as well as fiber products. Lobster Fresh, Live, Chilled, Dried: $348.9 million • Maine is the largest producer of brown eggs and wild blueberries in the world. Salmon, Fresh & Chilled: $36 million Cranberries & Blueberries, Frozen: $27.3 million • Maine is 2nd in the country in the production of maple syrup and 5th in the production of potatoes. Chicken Meat, Prepared & Preserved: $27.2 million Sea Urchins, Live, Fresh & Chilled: $23.5 million • Maine ranks 2nd in New England in milk and livestock production. Potato Products, Prepared & Frozen: $22.6 million • The egionr is home to many small and medium sized renowned manufacturers of Cranberries & Blueberries, Fresh: $19.9 million condiments, jams, confectionery products, cheeses, baked goods and organic foods. Salmon Fillets Fresh & Chilled: $18.7 million • In 2014, Maine exported $106.7 million in processed food products with top markets Lobster, Prepared & Preserved: $16.4 million including Canada, Mexico, Japan, South Korea and Guatemala. Lobsters, Including In-Shell, Frozen: $15.4 million • In 2014 exports of fish and seafood from Maine added up to $469.7 million, ranking Eggs of Chickens, Fresh: $8.3 million 4th in the nation, top destinations including Canada, China, Japan, South Korea and Maple Sugar & Maple Syrup: $7.7 million Hong Kong. Live Eels: $5.4 million

DECEMBER/JANUARY 2016 WWW.FOODEXPORT.ORG U.S. FOODLINK • 5 U.S. FOODLINK-December/January 2016 News Briefs Mobile technology connects or more and approximately and roasted garlic puree. The consumers with farmers in 25% eating for dinner Broth Bar in Oregon features Tim Hamilton the produce aisle. A Nevada once a week, according to a several varieties of broth, Executive Director grocery retailer has unveiled poll by Krusteaz and ORC including lamb, bison and pork, [email protected] an innovative app to enable International. Households with and add-ins such as soft-boiled John Belmont customers at the Great Basin children are more likely than duck eggs, sauerkraut and kelp Communications Manager Community Food Co-op to those without to participate in noodles. Nona Lim Foods in [email protected] meet and interact with local breakfast for dinner meals (94% California crafts broths (Thai producers. The “Meet Your vs. 88%). Millennials are also Curry & Lime Bone Broth Food Export Association of the Midwest USA Farmer” app, touted as the big fans of breakfast night, with and Vietnamese Pho Bone first of its kind for a U.S. 94% saying they eat breakfast Broths) which are available 309 W. Washington Suite 600 for dinner. Approximately one- in refrigerated cases of select Chicago, IL 60606 grocery store, is on trend with T: 312/334-9200 consumers’ heightened desire for third of this generation enjoys markets and sold frozen online. F: 312/334-9230 local food. After downloading breakfast night weekly. Their Subscription service Bone Deep www.foodexport.org the new app, customers are favorite dish is pancakes or & Harmony, New York, is [email protected] able to point their phones to waffles. Among every age, syrup delivering a few quarts of bone Michelle Rogowski signs throughout the aisles and is the preferred topping for broth (Chicken Kombu Bone Deputy Director learn about the local grower pancakes and waffles. Broth and Gingered Beef Bone [email protected] who produced the food, as well Broth) to consumers weekly. Joe Yotti as watch a quick video from Bone broth is hot! The focus Branded Program Manager the farmer, according to The on health, wellness and clean Who’s buying groceries online? [email protected] eating is fueling the bone broth Interestingly, online grocery Lempert Report. Teresa Miller craze. Although the simple, old- shopping increased among all International Marketing Shoppers are willing to dig fashioned concept of simmering age groups in the past year, Program Manager deeper into their wallets for animal bones has been around according to a new study by [email protected] local products. The majority for centuries, consumers are global management consulting Rob Lowe of American shoppers (85%) embracing it as an exciting firm A.T. Kearney. While buyers Financial Manager say buying local products is new discovery! Broth bars are in the 25-34 age group (37%) [email protected] important to them, and more popping up everywhere in the have the greatest percentage Food Export USA-Northeast than one-third are willing to U.S. In New York, chef Marco of shoppers who report they pay a 15% to 30% premium Canora opened Brodo (broth in have purchased groceries One Penn Center for them. Also, 87% are more Italian), a takeout window next online, penetration rose by 1617 J.F.K. Boulevard, Suite 420 to his Italian restaurant, serving more than five times in some Philadelphia, PA 19103 inclined to purchase a local T: 215/829-9111 product when they know the only steaming stock. Hundreds other segments. One-quarter F: 215/829-9777 story behind the grower or of customers line up daily at of shoppers 65 and older say www.foodexport.org [email protected] processor, revealed a 2015 the window for a cup of broth, they bought groceries online in survey by Precima. which takes some 20 hours to the past year. Demographically, Lauren Swartz prepare, according to the New urban dwellers (41%) and Deputy Director Breakfast for dinner is more York Post. Chicken, turkey and people earning more than [email protected] popular than ever! Nearly beef broth can be enjoyed solo, $75,000 (22%) also are Joshua Dillard 90% of Americans eat breakfast or customized with add-ins shopping more online than Branded Program Manager for dinner, with 53% having such as freshly grated turmeric, suburban and rural people and [email protected] breakfast dinners once a month shitake tea, fermented beet juice lower income levels. Suzanne Milshaw International Marketing Program Manager MISSION STATEMENT U.S. FOODLINK [email protected] SUBSCRIPTIONS Bruce Pansius The U.S. Foodlink newsletter and e-mail bulletin are brought to you by the Food Export Association of the Financial Manager Midwest USA and Food Export USA–Northeast, two state regional trade groups located in the U.S. that promote The U.S. Foodink newsletter is [email protected] exports of U.S food and agriculture. Food Export–Midwest and Food Export–Northeast administer many services available every other month, through Market Access Program (MAP) funding from the Foreign Agricultural Service (FAS) of the USDA. U.S. in many countries around the Foodlink was created to provide readers credible data and information in an easy-to-read format. world. Find out how to access Food Export–Midwest and Food Export–Northeast administer many services through Market Access Program the newsletter in your country (MAP) funding from the Foreign Agricultural Service (FAS) of the USDA. Persons with disabilities who require by sending an e-mail to GOT FEEDBACK? alternate means of communication of program information should contact us. Food Export Midwest and [email protected]. Northeast do not tolerate fraud and are vigilant in preventing fraud in any of our programs. Food Export does Let us know what you not discriminate, and we reserve the sole right to accept or deny companies into our programs. For complete like about U.S. Foodlink, participation policies and our code of ethics, visit: www.foodexport.org/termsandconditions. and how we can make it better: send an e-mail to [email protected] SIGN UP FOR NEWS Receive free monthly news updates in your in-box to stay on top of the latest global food service and retail news. 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6 • U.S. FOODLINK WWW.FOODEXPORT.ORG DECEMBER/JANUARY 2016